Anti-Buy & Bail Rule Eliminated

With the elimination of Fannie Mae’s anti-buy & bail rule, buyers can expect a much simpler qualification process.

Fannie Mae Eliminates its Anti-Buy & Bail Underwriting Rule!

For move-up buyers, converting a departing residence into a rental property just got easier! Effective immediately, Fannie Mae will no longer require that the proposed rental income for a departing residence be buttressed to equity in order to qualify for a new home purchase! Previously, the anti-buy & bail rule required homeowners to carry a minimum 30% equity in order to use the proposed rental income that was needed to qualify for a new home purchase. Although the purpose of the rule was to protect against fraudulent buy & bail practices, it also constrained many well-intended buyers.

Fortunately, the elimination of this rule can now help buyers who:

Need to finance their next non-contingent purchase

Prefer to keep a rental property to generate income. After all, with the steep trajectory rents have taken, it may be a smart move to hang on to a property that can generate some income.

Want to avoid a “double-move” and sell their home at a later date

If you are a buyer and if this scenario sounds like yours, expect a much simpler qualification process. To be sure, please contact me for more information and/or assistance. At PrimeLending we are Home Loans Made Simple.

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Scott was a pleasure to work with and came through for my commercial loan with results. He showed perseverance and keep me in a positive frame of mind through every hurdle along the way. His attention to detail and personal...